Justice Department moves to block merger of AT&T and T-Mobile

by on August 31, 2011 · 3 comments

in American Empire, Media

By Associated Press / Washington Post /  August 31, 2011

WASHINGTON — The Justice Department filed suit Wednesday to block AT&T’s $39 billion deal to buy T-Mobile USA on grounds that it would raise prices for consumers.   The government contends that the acquisition of the No. 4 wireless carrier in the country by No. 2 AT&T would reduce competition.

At a news conference, Deputy Attorney General James Cole said the combination would result in “tens of millions of consumers all across the United States facing higher prices, fewer choices and lower quality products for mobile wireless services.”   The lawsuit seeks to ensure that everyone can continue to receive the benefits of competition, said Cole.

AT&T said it would fight and ask for an expedited court hearing “so the enormous benefits of this merger can be fully reviewed.” The company said the government “has the burden of proving alleged anti-competitive effects, and we intend to vigorously contest this matter in court.”

Four nationwide providers — Verizon, AT&T, T-Mobile and Sprint — account for more than 90 percent of mobile wireless connections.

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{ 3 comments… read them below or add one }

avatar Ken August 31, 2011 at 10:57 am

I’ve been blogging about this for a few months. I’m glad that government works and other people are smart enough to see that it was a bad idea then do something about it.


avatar RB August 31, 2011 at 4:38 pm

This decision only means customers will leave one by one.
There will be no T Mobile in a couple of years.


avatar vinay bhagat August 31, 2011 at 4:05 pm

I don’t favor the merger. When telecom companies are allowed to gobble up telecom companies, the lack of competition leads to higher prices and shadier practices from an industry that isn’t exactly transparent in thier pricing structure.

Sure, pure capitalism would dictate that the merger should happen, but sometimes, capitalism- albeit the best economic system in the world- is better when it’s not so pure.


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